USDA Corn Shocker

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Nichoman's picture
Nichoman
Status: Gold Member (Offline)
Joined: Nov 1 2008
Posts: 420
USDA Corn Shocker

Folks...

The USDA confirmed what was discussed in 2 previous posts put out over past two months titled "HEADS UP: Watch Grain Prices Next 8 Weeks" in August and the September update "UPDATE: Effectively Out Of Corn (Soon Soybeans)?"

See the Wall Street Journal  post about the USDA report released today of .over a 5 percent drop in yields from 162.5 bu/acre to 155.8 bu/acre.

Now..this has caused a limit up of 30 cents in futures until July 2012 (need say more). 

Folks...this is significant...especially those who are following food supply issues.

This confirms ongoing conversations with local farmers (including family).   Please read the 2 previous posts above of where we appear to be headed.

Addtional Impacts to our faultering economy...then of course, society? 

Nichoman    

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1373
Re: USDA Corn Shocker

Nico,

OK, could you go into more detail as to what is occurring and your prediction as to what's going to occur in the near and distant future?  You know I've read the other two thread thoroughly but would like an update if you could.  In other words, lay it out in a neat, easy, layman type fashionSmile

Or, you can tell me to bugger off!Tongue out

docmims's picture
docmims
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Joined: Jun 17 2009
Posts: 644
Re: USDA Corn Shocker

Logan +1.  Is it weather issue? or something else like disease?

Nichoman's picture
Nichoman
Status: Gold Member (Offline)
Joined: Nov 1 2008
Posts: 420
Re: USDA Corn Shocker

LR...

Sure.  This report, combined with lower stocks, indicates supply shortfalls will be likely unless world demand drops of (no evidence).

1.)  Prices should be volatile and rise well beyond rate of inflation.

2)   Keen farmers are now aware of this and will plan accordingly in selling this years crop harvest.

3.)  My take (and my father-in-law's) is at least spotty shortages seem almost assured by fall of next year.

4.)  USDA credibility continues to fall.

BOTTOM LINE:  Higher Food Prices.

2 cents,

Nichoman

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1373
Re: USDA Corn Shocker

Thank you!

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Online)
Joined: Dec 13 2009
Posts: 1587
Re: USDA Corn Shocker

This is only a shocker to those who were not paying attention. Keep an eye out for the weather: it was too wet this spring in the USA, too hot in the late summer, and the grain problems in Russia were well-known.

I don't trust the USDA forecasts any more than I trust the "official" unemployment figures. There is too much political gain to be gotten by manipulated them both.

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